Ep. 347: State Department Proposes Rules that Could Hurt Ministries Salem Media Reports Big Loss

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SHOW NOTES:

On today’s program, a proposed State Department rule could impact employment regulations for nonprofits…and some ministry leaders are voicing concern. We’ll take a look.

And, the North Carolina pastor who went viral for remarks he made from the pulpit about rape has apologized—but the controversy, which has sparked ongoing protests, caught the attention of lawmakers and inflamed the state’s debate over school vouchers. We’ll have details.

Also, Salem Media—one of the only Christian publicly traded companies—has reported a $46 million operating loss in its latest annual report. That story later in the program.

But first two Christian Colleges face legal challenges due to their names.

I was in Indianapolis this week meeting with donors and others there. If you came out to some of my meetings, thanks for hanging out with me. Special thanks to Bill Warren with FAME, a medical missions organization based in Indianapolis for showing me some Hoosier hospitality.

I also want to remind everyone that we’re offering an important new book this month to everyone who donates to MinistryWatch. It’s called “How I Lost $1,500,000 in Missions” by John Addink. If you are a donor to foreign missions projects, a ministry leader of a missions organization, or perhaps a pastor who supports missionaries, you should read this book. We’ll send it to you absolutely free, as our thank you, for a gift of any size to MinistryWatch this month. Just go to MinistryWatch.com and hit the donate button at the top of the page.

The producer for today’s program is Jeff McIntosh.  We get database and other technical support from Stephen DuBarry, Rod Pitzer, and Casey Sudduth. Writers who contributed to today’s program include Cheryl Mann Bacon, Kim Roberts, Tony Mator, Aaron Earls, Christopher Mann, Shannon Cuthrell, Richard Levey, Brittany Smith, and Christina Darnell.

A special thanks to The Christian Chronicle, Lifeway Research, and The NonProfit Times for contributing material for this week’s podcast.

Until next time, may God bless you.

COMPLETE TRANSCRIPT:

FIRST SEGMENT

Warren

Hello everybody.  I’m Warren Smith, coming to you from Charlotte, North Carolina.

Natasha 

I’m Natasha Cowden in Denver, Colorado. We’d like to welcome you to the MinistryWatch podcast.

Warren

On today’s program, a proposed State Department rule could impact employment regulations for nonprofits…and some ministry leaders are voicing concern. We’ll take a look.

And, the North Carolina pastor who went viral for remarks he made from the pulpit about rape has apologized—but the controversy, which has sparked ongoing protests, caught the attention of lawmakers and inflamed the state’s debate over school vouchers. We’ll have details.

Also, Salem Media—one of the only Christian publicly traded companies—has reported a $46 million operating loss in its latest annual report. That story later in the program.

Natasha

But first two Christian Colleges face legal challenges due to their names.

Warren:

 Lubbock Christian University in Texas and newly renamed Rochester Christian University in Michigan —Both schools are associated with Churches of Christ.

Lubbock Christian University found itself in court defending the use of its LCU moniker against Louisiana Christian University, which adopted that name only two and a half years ago after more than a century as Louisiana College.

 Natasha:

 So what’s happening between the schools?

Warren:


A January 2023 letter to the Louisiana school stated, “Lubbock Christian University will again request an amicable discussion between our institution[s] on this matter. But we are prepared to defend our right to our trademark if necessary.”

As of January, the case had been transferred to a new judge and assigned to a magistrate for a report and recommendation.

 

While the parties await a ruling, both universities continue to use their LCU logos.

 

Natasha:

 

And what about the University of Rochester and Rochester University?

 

Warren:

 

Although the trademark issues in the two cases are similar, the roles are reversed.

 

University of Rochester, a 173-year-old, research-based university. Rochester Christian University is a much smaller and newer school.

 

The URLs for the two universities’ websites were mentioned repeatedly as particularly problematic, differing by only one character and leading to misdirection from search engines.

 

Warren:

 

Shortly after it was filed, the case was automatically referred for mediation. Subsequently, Rochester University announced in its Feb. 21 chapel assembly the plan to change its name to Rochester Christian University but declined to discuss the change outside that in-house announcement prior to a news release on March 8.

 

Natasha:

 

Our next story involves new rules that could limit work of Christian Humanitarian Groups.

 

Warren:

 

Several Christian ministries are raising concerns about a proposed addition to Department of State regulations that would limit the employment decisions of those accepting foreign assistance.

 

The Accord Network, Samaritan’s Purse, Christian Legal Society, and the Ethics and Religious Liberty Commission (ERLC) of the Southern Baptist Convention, along with others, filed an official comment about the proposed changes.

 

The proposal “expressly states that recipients and subrecipients receiving Department-funded foreign assistance funds must not discriminate on specified bases against end users of supplies or services (also referred to in this rule as beneficiaries and potential beneficiaries) or in certain employment decisions.”

Natasha:

 

These ministries agree that they should not discriminate against beneficiaries, but have serious “concerns” about the rules governing employment decisions.

 

Warren:

Many of these faith-based humanitarian ministries make employment decisions that are guided by religious beliefs to which they adhere.

 

According to the ERLC, the rules would “not allow [faith-based organizations] to consider sexual orientation and gender identity or expression in the hiring process in order to remain eligible for foreign aid funding. Hiring staff members that reflect the religious beliefs of an organization is a long-standing pillar of religious liberty protections.”

Natasha:

 

Can you give an example of how this could impact humanitarian aid?

 

Warren:

Samaritan’s Purse president Franklin Graham said, These proposed State Department regulations could be used to force faith-based organizations like Samaritan’s Purse to hire staff who disagree with our core biblical beliefs about God’s design for marriage, sexuality, and gender in order to be eligible for government grants.”

 

Only about 6% of Samaritan’s Purse funding comes from government grants and even less from the State Department, Graham said.

 

“But with those grants, we are able to assist tens of thousands of people around the world. We do all of this without placing any conditions or requirements on the aid. We help those who are in need, regardless of their sexual orientation, gender, race, religion, or anything else,”

 

Natasha:

 

The group of faith-based ministries are requesting some changes to the proposed rules – can you fill us in on what they are?

Warren:

 

First, the groups ask the regulations to state clearly that the State Department recognizes that laws such as the First Amendment, Title VII of the Civil Rights Act, and the Religious Freedom Restoration Act protect the rights of faith-based groups from the proposed employment nondiscrimination rules.

Second, rather than have a waiver process, the groups ask that a “categorical exemption” of religious organizations be adopted.

 

Natasha

Lets move to our next story – what can you tell us

 

Warren:

 

When an X social media account, Bad Preacher Clips, shared six-month-old video footage of Rev. Bobby Leonard, pastor of Bible Baptist Tabernacle in North Carolina seemingly excusing the rape of women who wear shorts created quite the stir in the community.

 

The video shows him saying “If you dress like that and you get raped and I’m on the jury, he’s gonna go free,” Leonard said in a sermon filmed on Aug. 15. “You don’t like that, do you? I’m right, though. Because a man’s a man.”

 

After his comments went viral, the pastor quickly changed his tune and apologized for his “foolish and sinful” words.

 

Nevertheless, the video sparked ongoing protests outside the self-described “independent, fundamental, baptist” church by local community members.

 

Natasha:

 

But beyond protests, this video got state attention too.

Warren:

 

North Carolina Democrat Gov. Roy Cooper, seized upon the outrage to fuel his war against the state’s popular Opportunity Scholarship private school voucher program. Because Leonard’s church runs a school that has received more than $3.3 million in vouchers over the last five years.

The viral video and the controversy has become big news in North Carolina because Republican lawmakers are trying to extend the voucher program.

 

Natasha

 

Warren, let’s take a quick break. When we return, the numbers are in, and the Southern Baptist Convention lost more than 12-hundred congregations in 2022.

 

I’m Natasha Cowden, along with my co-host Warren Smith, and we’ll have that story and much more, after this short break.

 

BREAK

 

SECOND SEGMENT

 

Natasha

 

Welcome back.  I’m Natasha Cowden, along with my co-host Warren Smith, and you’re listening to the MinistryWatch podcast.

 

Our next story, the SBC loses 1,200 congregations

 

Warren:

 

According to Lifeway Research’s analysis of the 2022 Annual Church Profile of the Southern Baptist Convention, 1,253 congregations that were part of the Convention in 2021 were no longer connected in 2022.

 

Among the 50,423 active congregations in the Southern Baptist Convention in 2021, 2% disbanded or closed and 0.5% left or were disaffiliated from the Convention by the time the 2022 data was compiled.

 

Natasha:

 

Why are so many congregations leaving?

 

Warren:

 

Around 4 in 5 of the missing congregations (79%) disbanded/closed, leaving Southern Baptists with 984 fewer congregations.

 

Within that group, 813 (83%) closed. Another 136 (14%) merged into another Southern Baptist congregation. Fewer became part of a non-Southern Baptist church (17 or 2%), never got started (8 or 1%) or are now a campus of another church (10 or 1%).

 

228 or 18% Southern Baptist congregations either left the Convention or were disaffiliated.

 

Natasha:

 

This rate is higher than previous years

 

Warren:

 

It is. While the number of congregations who left or were disaffiliated doubled in 2022.

 

Natasha:

 

Next, Unto, Cru’s international humanitarian ministry, has initiated a fundraising campaign to feed over one million hungry children in 10 countries around the world this summer.

 

Warren:

 

Warren ad-lib:  Fact checking fundraising claims.

 

According to a fundraising campaign email, contributions of less than $1 per day will “provide three meals to someone facing starvation.” A gift of $99 will provide 330 meals.

 

In addition to feeding those in need, Unto hopes to share the “message of Jesus with those who might otherwise be unreachable.”

 

The current meal fundraising campaign began just this week, Cru spokesperson Karen Dye explained to MinistryWatch, and has raised just over $12,000 at the time of publication.

Natasha:

 

How much are they trying to raise?

Warren:

 

The goal is to raise about $300,000 to provide one million meals, and all contributions given through the fundraising effort link will go directly toward providing meals, not to a general fund.

 

Natasha:

 

What countries are they trying to serve?

 

Warren:

 

The meals will be distributed in Zambia, Liberia, and Suriname, but Unto did not provide a list of all 10 countries where it plans to distribute meals “due to safety concerns for [their] in-country partners.”

In the MinistryWatch database, Cru earns a 3-star financial efficiency rating, a “C” transparency grade, and a donor confidence score of 73. We do not have a separate database entry for Unto. It does make independently audited financial reports available on its website.

 

Natasha:

 

Our next story also involves international aid – this time in Haiti.

 

Warren:

Child Evangelism Fellowship (CEF) has been working in the Haiti for 40 years and has 19 staff and hundreds of trained volunteers. Even amidst the unrest, CEF Haiti staff and volunteers were able to plan 45 Easter parties that 1,500 children attended, with 58 making professions of faith in Jesus Christ.

 

CEF’s mission is “to evangelize boys and girls with the Gospel of the Lord Jesus Christ and to establish (disciple) them in the Word of God and in a local church for Christian living.”

Natasha

 

What’s happening now?

Warren:

 

This week, CEF Haiti will provide training to parents and ministry to children of the estimated 100,000 Haitians in displacement camps to help them cope with the crisis.

 

The people of Haiti are dealing with unrest, fear, and violence and need help understanding how God can provide hope in the midst of their suffering, CEF Vice President of Global Partnership John Luck told MinistryWatch.

 

Natasha:

 

How does CEF practically fulfill its mission?

Warren:

 

It holds a long-term view with three essential steps: it trains nationals, equips them with ministry tools, and provides resources.

 

Luck said that CEF has been training Haitian nationals to minister to children for 40 years. Nationals are best positioned to carry out ministry because they already know the language and culture and will not flee the country when times get hard.

 

That’s an approach MinistryWatch has endorsed.

 

Natasha:

 

How can Christians here get involved?

Warren:

 

Luck said that Christians can pray for peace, stable leadership, and the influence of gangs to be diminished. They can also pray CEF resources are able to reach their destination without being vandalized and pray for the safety of CEF workers who are putting themselves in harm’s way to minister to children.

In the MinistryWatch database, CEF earns a 2-star financial efficiency rating, an “A” transparency grade, and a donor confidence score of 75, meaning donors can give with confidence.

 

Natasha:

 

Let’s look at one more story before our next break

 

Warren:

The pastor of the Moundville Methodist Church in Moundville, Alabama, and the church’s day care ministry director were arrested Monday on charges of Failure To Report Child Abuse and Obstruction of Governmental Investigation.

 

Local media reported Tuesday that Pastor Michael A. Cobb, 42, and Breanna Hope Lee, 34, neglected to report allegations of child abuse for approximately a month. Ada Jimerson, 59, was arrested on charges of child abuse and taken to Hale County Jail, and at least one more day care worker is under investigation.

Natasha:

 

Can you explain how the pastor was involved?

Warren:

 

According to Police Chief Toby Banks, the Moundville Police Department (MPD) received credible information from a reliable source April 2 about possible child abuse at the church’s day care ministry. Banks told local ABC affiliate WBMA that he spoke to Lee the next day, who said the church was preparing to fire one of the women allegedly involved in an abuse incident and, in doing so, revealed the church was already aware of a potential abuse incident but had not reported it to police.

 

Alabama is a must-report state where suspicion or knowledge of child abuse must be reported to law enforcement for investigation.

 

Natasha:

 

what about the woman who was accused?

Warren:

On Tuesday, April 9, Ada Jimerson, 59, was arrested on one Class C felony count of child abuse, accused with hitting children with kitchen spoons and biting children as punishment. If convicted, Jimerson could face between one and 10 years in prison and a fine up to $15,000.

Moundville Methodist Church has not publicly commented about the arrests. The church has indefinitely shut down the daycare as of April 8.

 

 

 

Natasha

 

Warren, we’re going to take another break.  When we return, our lightning round of ministry news of the week.

 

I’m Natasha Cowden, with my co-host Warren Smith. More in a moment.

 

BREAK

 

THIRD SEGMENT

 

Natasha

 

Welcome back.  I’m Natasha Cowden, with my co-host Warren Smith and you’re listening to the MinistryWatch Podcast.

 

Warren, we like to use this last segment as a sort of lightning round of shorter news briefs.

 

What’s up first?

 

Warren

 

Broadcasting giant Salem Media Group (OTCQX: SALM), one of the only Christian publicly traded companies, closed 2023 with $258 million in revenue—down $8 million from 2022, driven by falling ad sales. In its latest annual report, the Texas-based company reported a $46 million operating loss with nearly $305 million in expenses. It totaled $455 million in assets, compared to $505 million a year earlier.

 

Natasha:

 

What’s next?

 

Warren:

 

An expected rate case filing by the U.S. Postal Service (USPS) could include increases of nearly 10%. This rate increase impacts us all, but it will hit non-profits who send bulk mail particularly hard. If approved, the new rates would be implemented in July.

 

Natasha

 

Who is in our Ministry Spotlight this week?

 

Warren

 

Alpha USA, headquartered in Illinois, recently saw its overall MinistryWatch efficiency rating fall from four stars to three.

 

The main reason for the drop was its fundraising costs. Its fundraising cost ratio is 11%, compared to 6% for other organizations in the same sector.

 

Alpha USA helps churches and other organizations host an 11-week series that explores the Christian faith. Alpha has proven to be an effective evangelism tool in many churches.

 

IN spite of this drop in financial efficiency, MinistryWatch Donor Confidence Score: 87 (out of a possible 100) and their Transparency Grade is an A.

 

Natasha

 

And who did Christina highlight in Ministries Making a Difference?

 

Warren

 

Hastings Church of the Nazarene in Barry County, Michigan, has become the county’s sole provider of English Language Learning classes. The rural church partnered with West Michigan Works to start classes and find students, many of whom work on local farms. Some of the first students are slated to become church members, and the church plans to offer Spanish-speaking membership classes.

 

Operation Blessing has deployed an International Disaster Relief team to Taiwan from its Philippines location to assess the needs of victims ravaged by a 7.4 magnitude earthquake last week that killed at least 12 people.

 

A team from Bethany Church in Wyckoff, New Jersey, recently partnered with Builders International to repair a church in the Bahamas that was damaged by a hurricane. Builders International, an Assemblies of God ministry, partners with missionaries around the world on construction projects, such as schools, churches, orphanages, and safe houses, and has mobilized over 200 teams in the past three years and works in 39 countries.

 

In November, we reported that Mission Cry was shipping a container filled with instruments to music students in Liberia along with Bibles and other supplies to a nearby seminary. At that time, Mission Cry was still waiting for the stocked container to be sponsored and shipped. Now, according to Mission Network News, the container has been safely delivered. The music students even produced a video saying thank you.

 

Natasha

 

Warren, any final thoughts before we go?

 

Warren

 

I was in Indianapolis this week meeting with donors and others there. If you came out to some of my meetings, thanks for hanging out with me. Special thanks to Bill Warren with FAME, a medical missions organization based in Indianapolis for showing me some Hoosier hospitality.

 

I also want to remind everyone that we’re offering an important new book this month to everyone who donates to MinistryWatch. It’s called “How I Lost $1,500,000 in Missions” by John Addink. If you are a donor to foreign missions projects, a ministry leader of a missions organization, or perhaps a pastor who supports missionaries, you should read this book. We’ll send it to you absolutely free, as our thank you, for a gift of any size to MinistryWatch this month. Just go to MinistryWatch.com and hit the donate button at the top of the page.

 

Natasha

 

The producer for today’s program is Jeff McIntosh.  We get database and other technical support from Stephen DuBarry, Rod Pitzer, and Casey Sudduth. Writers who contributed to today’s program include Cheryl Mann Bacon, Kim Roberts, Tony Mator, Aaron Earls, Christopher Mann, Shannon Cuthrell, Richard Levey, Brittany Smith, and Christina Darnell.

 

A special thanks to The Christian Chronicle, Lifeway Research, and The NonProfit Times for contributing material for this week’s podcast.

 

I’m Natasha Cowden, in Denver, Colorado.

 

Warren

 

And I’m Warren Smith happy to be back home in Charlotte, North Carolina.

 

Natasha

 

You’ve been listening to the MinistryWatch podcast.  Until next time, may God bless you.